Advanced Semiconductor Engineering, Inc. and Subsidiaries

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(1)Advanced Semiconductor Engineering, Inc. and Subsidiaries. -1-. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. Consolidated Financial Statements as of December 31, 2016 and 2017 and for the Years Ended December 31, 2015, 2016 and 2017 and Reports of Independent Registered Public Accounting Firms.

(2) REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the Board of Directors of Advanced Semiconductor Engineering, Inc.. Opinion on the Financial Statements We have audited the accompanying consolidated balance sheets of Advanced Semiconductor Engineering, Inc. (a corporation incorporated under the laws of the Republic of China) and its subsidiaries (collectively, the “Group”) as of December 31, 2016 and 2017, the related consolidated statements of comprehensive income, changes in equity and cash flows for each of the three years in the period ended December 31, 2017, and the related notes (collectively referred to as the “financial statements”) (all expressed in New Taiwan dollars). In our opinion, based on our audits and the report of the other auditors, the financial statements present fairly, in all material respects, the financial position of the Group as of December 31, 2016 and 2017, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2017, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.. Our audits also comprehended the translation of New Taiwan dollar amounts into U.S. dollar amounts and, in our opinion, such translation has been made in conformity with the basis stated in Note 4 to the consolidated financial statements. Such U.S. dollar amounts are presented solely for the convenience of the readers outside the Republic of China. We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Group’s internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 23, 2018 expressed an unqualified opinion on the Group’s internal control over financial reporting based on our audit. Basis for Opinion These financial statements are the responsibility of the Group’s management. Our responsibility is to express an opinion on the Group’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Group in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. -2-. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. We did not audit the 2016 and 2017 consolidated financial statements of Siliconware Precision Industries Co., Ltd. (“SPIL”), the Group’s investment in which is accounted for by use of the equity method. The accompanying consolidated financial statements of the Group include its equity investment in SPIL of NT$45,898,225 thousand and NT$45,210,371 thousand (US$1,525,316 thousand), constituting 13% and 12% of the Group’s total assets as of December 31, 2016 and 2017, respectively, and its share of profit in SPIL of NT$1,725,053 thousand and NT$915,253 thousand (US$30,879 thousand), constituting 8% and 4% of the Group’s net profit for the years ended December 31, 2016 and 2017, respectively. The consolidated financial statements of SPIL as of and for the years ended December 31, 2016 and 2017 were audited by the other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Group’s equity investment and share of profit in SPIL, is based solely on the report of the other auditors..

(3) We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits and the report of the other auditors provide a reasonable basis for our opinion.. /s/Deloitte & Touche Taipei, Taiwan Republic of China March 23, 2018. -3-. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. We have served as the Group’s auditor since 1984..

(4) ADVANCED SEMICONDUCTOR ENGINEERING, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in Thousands). CURRENT ASSETS Cash and cash equivalents (Notes 4 and 6) Financial assets at fair value through profit or loss current (Notes 4 and 7) Available-for-sale financial assets - current (Notes 4 and 8) Trade receivables, net (Notes 4 and 9) Other receivables Current tax assets (Notes 4 and 25) Inventories (Notes 4 and 10) Inventories related to real estate business (Notes 4, 11, 24 and 36) Other financial assets - current (Notes 4, 12 and 36) Other current assets. $. $. 46,078,066. $. 1,554,591. 3,069,812. 5,223,067. 176,217. 266,696 51,145,557 665,480 471,752 21,438,062. 89,159 55,200,706 1,051,955 260,542 24,260,911. 3,008 1,862,372 35,491 8,790 818,519. 24,187,515 558,686 2,593,575. 9,819,516 472,340 2,482,010. 331,293 15,936 83,738. 142,789,659. 144,938,272. 4,889,955. 1,028,338. 1,123,006. 37,888. 49,824,690. 48,753,751. 1,644,863. 143,880,241 10,490,309 1,617,261 4,536,924. 135,168,406 8,119,436 9,934,494 1,406,865 4,001,821. 4,560,338 273,935 335,172 47,465 135,014. 1,320,381 2,237,033 205,740. 1,170,500 8,851,330 454,391. 39,491 298,628 15,330. 215,140,917. 218,984,000. 7,388,124. $ 357,930,576. $ 363,922,272. Total current assets NON-CURRENT ASSETS Available-for-sale financial assets - non-current (Notes 4 and 8) Investments accounted for using the equity method (Notes 4 and 13) Property, plant and equipment (Notes 4, 14, 24 and 37) Investment properties (Notes 4, 15, 24 and 36) Goodwill (Notes 4, 5, 16 and 28) Other intangible assets (Notes 4, 17, 24, 28 and 35) Deferred tax assets (Notes 4 and 25) Other financial assets - non-current (Notes 4, 12 and 36) Long-term prepayments for lease (Notes 18 and 36) Other non-current assets Total non-current assets TOTAL. 38,392,524. December 31, 2017 NT$ US$ (Note 4). $. 12,278,079. (Continued). -4-. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. ASSETS. December 31, 2016 (Retrospectively Adjusted) NT$.

(5) ADVANCED SEMICONDUCTOR ENGINEERING, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts in Thousands). CURRENT LIABILITIES Short-term borrowings (Note 19) Financial liabilities at fair value through profit or loss - current (Notes 4 and 7) Trade payables Other payables (Note 21) Current tax liabilities (Notes 4 and 25) Current portion of bonds payable (Notes 4 and 20) Current portion of long-term borrowings (Notes 19 and 36) Other current liabilities. $. Total current liabilities NON-CURRENT LIABILITIES Bonds payable (Notes 4 and 20) Long-term borrowings (Notes 19 and 36) Deferred tax liabilities (Notes 4 and 25) Net defined benefit liabilities (Notes 4 and 22) Other non-current liabilities Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY (Notes 4 and 23) Share capital Ordinary shares (Note 31) Shares subscribed in advance Total share capital Capital surplus (Note 31) Retained earnings (Notes 13 and 28) Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Treasury shares Equity attributable to owners of the Company. $. 17,962,471. $. 606,021. 1,763,660 35,803,984 21,522,034 6,846,350 9,658,346. 677,430 41,672,233 21,377,887 7,619,328 6,161,197. 22,855 1,405,946 721,251 257,062 207,868. 6,567,565 3,852,113. 8,261,625 4,644,566. 278,732 156,699. 106,969,574. 108,376,737. 3,656,434. 27,341,557 46,547,998 4,856,549 4,172,253 1,201,480. 16,981,583 27,145,003 4,961,487 3,936,685 1,210,590. 572,928 915,823 167,392 132,817 40,843. 84,119,837. 54,235,348. 1,829,803. 191,089,411. 162,612,085. 5,486,237. 79,364,735 203,305 79,568,040 22,266,500. 87,246,194 134,593 87,380,787 40,624,328. 2,943,529 4,541 2,948,070 1,370,591. 14,597,032 3,353,938 44,188,554 62,139,524 (1,840,937 ) (7,292,513 ). 16,765,066 3,353,938 53,599,541 73,718,545 (6,311,089 ) (7,292,513 ). 565,623 113,156 1,808,352 2,487,131 (212,925 ) (246,036 ). 154,840,614. 188,120,058. 6,346,831. 12,000,551. 13,190,129. 445,011. 166,841,165. 201,310,187. 6,791,842. $ 357,930,576. $ 363,922,272. NON-CONTROLLING INTERESTS (Notes 4 and 23) Total equity TOTAL. 20,955,522. December 31, 2017 NT$ US$ (Note 4). The accompanying notes are an integral part of the consolidated financial statements.. -5-. $. 12,278,079. (Concluded). WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. LIABILITIES AND EQUITY. December 31, 2016 (Retrospectively Adjusted) NT$.

(6) ADVANCED SEMICONDUCTOR ENGINEERING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in Thousands Except Earnings Per Share) For the Years Ended December 31 2016 (Retrospectively 2017 Adjusted) NT$ NT$ US$ (Note 4). 2015 NT$ OPERATING REVENUES (Note 4). $ 283,302,536. $ 274,884,107. $ 290,441,208. $ 9,798,961. OPERATING COSTS (Notes 10, 24 and 28). 233,167,308. 221,696,922. 237,708,937. 8,019,870. 50,135,228. 53,187,185. 52,732,271. 1,779,091. Selling and marketing expenses General and administrative expenses Research and development expenses. 3,588,472 10,724,568 10,937,566. 3,473,586 11,662,082 11,391,147. 3,308,992 12,458,054 11,746,613. 111,639 420,312 396,309. Total operating expenses. 25,250,606. 26,526,815. 27,513,659. 928,260. 108,556. 3,662. GROSS PROFIT. OTHER OPERATING INCOME AND EXPENSES, NET (Note 24). (251,529 ). (800,280 ). PROFIT FROM OPERATIONS. 24,633,093. 25,860,090. 25,327,168. 854,493. NON-OPERATING INCOME AND EXPENSES Other income (Note 24) Other gains and losses (Note 24) Finance costs (Note 24) Share of the profit of associates and joint ventures (Notes 4 and 13). 815,778 1,748,795 (2,312,143 ). 589,236 2,276,544 (2,261,075 ). 707,754 6,259,453 (1,799,494 ). 23,878 211,183 (60,712 ). 126,265. 1,503,910. 525,782. 17,739. 378,695. 2,108,615. 5,693,495. 192,088. PROFIT BEFORE INCOME TAX. 25,011,788. 27,968,705. 31,020,663. 1,046,581. INCOME TAX EXPENSE (Notes 4 and 25). 4,311,073. 5,390,844. 6,523,603. 220,094. 20,700,715. 22,577,861. 24,497,060. 826,487. 205,344. 6,928. Total non-operating income and expenses. PROFIT FOR THE YEAR OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit obligation. (62,911 ). (417,181 ). (Continued) -6-. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. OPERATING EXPENSES (Notes 24 and 28).

(7) ADVANCED SEMICONDUCTOR ENGINEERING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Amounts in Thousands Except Earnings Per Share) For the Years Ended December 31 2016 (Retrospectively 2017 Adjusted) NT$ NT$ US$ (Note 4). Share of other comprehensive (loss) of associates and joint Income tax relating to items that will not be reclassified subsequently. $. Items that may be reclassified subsequently to profit or loss: Exchange differences on translating foreign operations Unrealized gain (loss) on availablefor-sale financial assets Share of other comprehensive income (loss) of associates and joint ventures. (37,748 ). $. 7,249. $. $. 245. 11,002 (89,657 ). 73,637 (393,338 ). (51,217 ) 161,376. (1,728 ) 5,445. (63,509 ). (6,445,643 ). (5,287,734 ). (178,399 ). 10,451. Other comprehensive loss for the year, net of income tax. (49,794 ). (248,599 ). 7,559. 224,036. (4,832 ) (57,890 ). (871,679 ) (7,565,921 ). 264,389 (4,799,309 ). 8,920 (161,920 ). (147,547 ). (7,959,259 ). (4,637,933 ). (156,475 ). TOTAL COMPREHENSIVE INCOME FOR THE YEAR. $ 20,553,168. $ 14,618,602. $ 19,859,127. $. 670,012. PROFIT FOR THE YEAR ATTRIBUTABLE TO: Owners of the Company Non-controlling interests. $ 19,732,148 968,567. $ 21,324,423 1,253,438. $ 22,819,119 1,677,941. $. 769,876 56,611. $ 20,700,715. $ 22,577,861. $ 24,497,060. $. 826,487. $ 19,659,081 894,087. $ 13,956,976 661,626. $ 18,524,067 1,335,060. $. 624,969 45,043. $ 20,553,168. $ 14,618,602. $ 19,859,127. $. 670,012. EARNINGS PER SHARE (Note 26) Basic Diluted. $ $. 2.58 2.48. $ $. 2.78 2.33. $ $. 2.80 2.60. $ $. 0.09 0.09. EARNINGS PER AMERICAN DEPOSITARY SHARE (“ADS”) Basic Diluted. $ $. 12.89 12.38. $ $. 13.91 11.64. $ $. 13.98 12.98. $ $. 0.47 0.44. TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO: Owners of the Company Non-controlling interests. The accompanying notes are an integral part of the consolidated financial statements. -7-. (Concluded). WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. 2015 NT$.

(8) ADVANCED SEMICONDUCTOR ENGINEERING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Amounts in Thousands) Equity Attributable to Owners of the Company. Share Capital Shares Amounts (In Thousands). BALANCE AT JANUARY 1, 2015. Retained Earnings Unappropriated Special Reserve Earnings. Capital Surplus. Legal Reserve. 7,861,725. $ 78,715,179. $ 16,013,980. $ 10,289,878. Equity component of convertible bonds issued by the Company (Note 20). -. -. 214,022. Appropriation of 2014 earnings Legal reserve Cash dividends distributed by the Company. -. -. $. Other Equity Unrealized Gain (Loss) on Available-forsale Financial Assets. Exchange Differences on Translating Foreign Operations. Total. 3,353,938. $ 36,000,026. $ 49,643,842. -. -. -. -. -. 2,359,267 -. -. (2,359,267 ) (15,589,825 ) (17,949,092 ). $. 4,540,862. $. Total. Treasury Shares. $. (1,959,107 ). Non-controlling Interests. Total. $. 147,481,534. 526,778. $ 5,067,640. -. -. -. -. (15,589,825 ). -. -. -. -. (15,589,825 ). -. (15,589,825 ). (15,589,825 ). -. -. -. -. (15,589,825 ). -. (15,589,825 ). 214,022. $. Total Equity. 8,209,860. $ 155,691,394. -. 214,022. -. -. -. 2,359,267. -. Change from investments in associates and joint ventures accounted for using the equity method. -. -. 150. -. -. -. -. -. -. -. -. 150. -. 150. Net profit for the year ended December 31, 2015. -. -. -. -. -. 19,732,148. 19,732,148. -. -. -. -. 19,732,148. 968,567. 20,700,715. Other comprehensive income (loss) for the year ended December 31, 2015, net of income tax. -. -. -. -. -. Total comprehensive income (loss) for the year ended December 31, 2015. -. -. -. -. -. 19,645,931. 19,645,931. Acquisition of treasury shares. -. -. -. -. -. -. -. Issue of dividends received by subsidiaries from the Company. -. -. 292,351. -. -. -. Partial disposal of interests in subsidiaries and additional acquisition of majority-owned subsidiaries (Note 30). -. -. 7,197,510. Changes in percentage of ownership interest in subsidiaries. -. -. 48,703. Cash dividends distributed by subsidiaries Additional non-controlling interest arising on issue of employee share options by subsidiaries (Note 27). (86,217 ). (86,217 ). (48,191 ). 61,341. 13,150. -. (48,191 ). 61,341. 13,150. -. -. -. -. -. -. -. -. (5,333,406 ). (73,067 ) 19,659,081. (74,480 ) 894,087. (147,547 ) 20,553,168. (5,333,406 ). -. (5,333,406 ). -. 292,351. -. 292,351. 7,197,510. 1,712,836. 8,910,346. 563,815. -. -. 1,074,833. -. -. -. -. -. -. -. -. -. -. -. -. -. -. -. 470,481. 604,352. -. -. -. -. -. -. -. -. 1,074,833. -. -. -. -. -. -. -. -. -. -. -. -. (232,148 ). (232,148 ). -. -. -. -. -. -. -. -. -. -. -. -. 344,095. 344,095. 7,910,428. 79,185,660. 23,758,550. 12,649,145. 3,353,938. 37,696,865. 53,699,948. 4,492,671. 588,119. 5,080,790. 154,432,435. 11,492,545. 165,924,980. -. -. -. 1,947,887 -. -. (1,947,887 ) (12,476,779 ). (12,476,779 ). -. -. -. -. (12,476,779 ). -. (12,476,779 ). -. -. -. 1,947,887. -. (14,424,666 ). (12,476,779 ). -. -. -. -. (12,476,779 ). -. (12,476,779 ). Change from investments in associates and joint ventures accounted for using the equity method. -. -. 51,959. -. -. -. -. -. 43,536. 43,536. -. 95,495. -. 95,495. Net profit for the year ended December 31,2016 (After retrospectively adjusted) (Notes 13 and 28). -. -. -. -. -. 21,324,423. 21,324,423. -. -. -. -. 21,324,423. 1,253,438. 22,577,861. Other comprehensive loss for the year ended December 31, 2016, net of income tax. -. -. -. -. -. Total comprehensive income (loss) for the year ended December 31, 2016 (After retrospectively adjusted). -. -. -. -. -. Issue of ordinary shares under employee share options (Note 27). BALANCE AT DECEMBER 31, 2015 Appropriation of 2015 earnings Legal reserve Cash dividends distributed by the Company. (402,184 ) 20,922,239. (402,184 ) 20,922,239. (7,292,513 ). (563,815 ). (6,136,294 ). (828,969 ). (6,965,263 ). -. (7,367,447 ). (6,136,294 ). (828,969 ). (6,965,263 ). -. 13,956,976. (591,812 ) 661,626. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. -. (563,815 ). (7,959,259 ) 14,618,602. (Continued). -8-.

(9) ADVANCED SEMICONDUCTOR ENGINEERING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Amounts in Thousands) Equity Attributable to Owners of the Company. Share Capital Shares Amounts (In Thousands). Issue of dividends received by subsidiaries from the Company. -. Partial disposal of interests in subsidiaries and additional acquisition of majority-owned subsidiaries (Note 30). -. -. $. Retained Earnings Special Unappropriated Reserve Earnings. Legal Reserve. 233,013. $. -. $. -. -. (20,552 ). -. -. $. -. Total. $. (5,884 ). -. $. (5,884 ). -. $. -. Total. $. Treasury Shares. -. $. -. Non-controlling Interests. Total. $. 233,013. -. -. -. -. (26,436 ). $. -. Total Equity. $. 26,436. 233,013 -. -. -. (1,912,887 ). -. -. -. -. -. -. -. -. (1,912,887 ). Issue of ordinary shares under employee share options (Note 27). 35,756. 382,380. 600,737. -. -. -. -. -. -. -. -. 983,117. Non-controlling interests arising from acquisition of subsidiaries (After retrospectively adjusted) (Note 28). -. -. -. -. -. -. -. -. -. -. -. -. 42,857. 42,857. Cash dividends distributed by subsidiaries. -. -. -. -. -. -. -. -. -. -. -. -. (237,850 ). (237,850 ). Additional non-controlling interest arising on issue of employee share options by subsidiaries (Note 27). -. -. -. -. -. -. -. -. -. -. 927,823. 483,503. 7,946,184. 79,568,040. 22,266,500. 14,597,032. 3,353,938. 44,188,554. 62,139,524. 12,000,551. 166,841,165. -. -. -. 2,168,034 -. -. (2,168,034 ) (11,415,198 ). (11,415,198 ). -. -. -. -. (11,415,198 ). -. (11,415,198 ). -. -. -. 2,168,034. -. (13,583,232 ). (11,415,198 ). -. -. -. -. (11,415,198 ). -. (11,415,198 ). Change from investments in associates and joint ventures accounted for using the equity method. -. -. 1,490. -. -. -. -. -. -. -. -. 1,490. -. 1,490. Net profit for the year ended December 31,2017. -. -. -. -. -. 22,819,119. 22,819,119. -. -. -. -. 22,819,119. 1,677,941. 24,497,060. Other comprehensive income (loss) for the year ended December 31, 2017, net of income tax. -. -. -. -. -. 175,100. 175,100. (5,090,036 ). 619,884. (4,470,152 ). -. (4,295,052 ). Total comprehensive income (loss) for the year ended December 31, 2017. -. -. -. -. -. 22,994,219. 22,994,219. (5,090,036 ). 619,884. (4,470,152 ). -. 18,524,067. 1,335,060. 19,859,127. Issue of ordinary shares for capital increase by cash (Note 23). 300,000. 3,000,000. 7,290,000. -. -. -. -. -. -. -. -. 10,290,000. -. 10,290,000. Issue of ordinary shares under conversion of bonds (Notes 20 and 23). 424,258. 4,242,577. 9,657,905. -. -. -. -. -. -. -. -. 13,900,482. -. 13,900,482. -. -. 200,977. -. -. -. -. -. -. -. -. 200,977. -. 200,977. BALANCE AT DECEMBER 31, 2016 (After retrospectively adjusted) (Notes 13 and 28) Appropriation of 2016 earnings Legal reserve Cash dividends distributed by the Company. Issue of dividends received by subsidiaries from the Company Changes in percentage of ownership interest in subsidiaries (Note 30) Issue of ordinary shares under employee share options (Note 27) Cash dividends distributed by subsidiaries Additional non-controlling interest arising on issue of employee share options by subsidiaries (Note 27). (444,320 ). (1,643,623 ). (197,314 ). (1,840,937 ). (912,886 ). (444,320 ). (7,292,513 ). (2,825,773 ). -. 154,840,614. 983,117. (342,881 ). (4,637,933 ). -. -. 3,055. -. -. -. -. -. -. -. -. 3,055. (3,055 ). -. 67,637. 570,170. 1,256,789. -. -. -. -. -. -. -. -. 1,826,959. (159,200 ). 1,667,759. -. -. -. -. -. -. -. -. -. -. -. -. (246,440 ). -. -. BALANCE AT DECEMBER 31, 2017. 8,738,079. $ 87,380,787. US DOLLARS (Note 4) BALANCE AT DECEMBER 31, 2017. 8,738,079. $. 2,948,070. -. -. -. $ 40,624,328. (52,388 ). $ 16,765,066. $. 3,353,938. $ 53,599,541. $ 73,718,545. $. (6,733,659 ). $. 422,570. $. $. $. 113,156. $. $. $. (227,182 ). $. 14,257. 1,370,591. -. 565,623. The accompanying notes are an integral part of the consolidated financial statements.. 1,808,352. 2,487,131. -. -. -. -. (52,388 ). $ (6,311,089 ). $. (7,292,513 ). $. 188,120,058. $. $. (246,036 ). $. 6,346,831. (212,925 ). WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. Changes in percentage of ownership interest in subsidiaries (Note 30). $. Capital Surplus. Other Equity Unrealized Gain (Loss) on Available-forsale Financial Assets. Exchange Differences on Translating Foreign Operations. (246,440 ). 263,213. 210,825. $ 13,190,129. $ 201,310,187. $. $. 445,011. 6,791,842. (Concluded). -9-.

(10) ADVANCED SEMICONDUCTOR ENGINEERING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in Thousands) For the Years Ended December 31 2016 (Retrospectively 2017 Adjusted) NT$ NT$ US$ (Note 4). CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax Adjustments for: Depreciation expense Amortization expense Net loss (gain) on fair value change of financial assets and liabilities at fair value through profit or loss Finance costs Interest income Dividend income Compensation cost of employee share options Share of profit of associates and joint Loss (gain) on disposal of property, plant and equipment Impairment loss recognized on financial assets Reversal of impairment loss on financial assets Impairment loss recognized on nonfinancial assets Gain on disposal of subsidiaries Net loss (gain) on foreign currency exchange Others Changes in operating assets and liabilities Financial assets held for trading Trade receivables Other receivables Inventories Other current assets Financial liabilities held for trading Trade payables Other payables Other current liabilities Other operating activities items Cash generated from operations Interest received Dividend received Interest paid Income tax paid Net cash generated from operating activities. $. 25,011,788. $. 28,938,770 579,894. (2,472,835 2,312,143 (242,084 (396,973 133,496 (126,265. 27,968,705. $. 28,961,614 508,823. ) ) ) ). (447,559 2,261,075 (230,067 (26,411 470,788 (1,503,910. 31,020,663. $. 28,747,518 457,666. ) ) ) ). 1,046,581 969,890 15,441. 2,783,902 1,799,494 (306,871 ) (59,039 ) 438,765 (525,782 ). 93,924 60,712 (10,353 ) (1,992 ) 14,803 (17,739 ). 126,132. 131,044. (348,070 ). (11,743 ). 8,232. 91,886. 77,101. 2,601. -. -. -. (28,022 ). 610,140 1,358,777 1,242,110. 1,340,011 (407,160 ) 900,378. 4,162,522 7,982,736 55,112 (5,128,726 407,017 (1,725,606 (1,272,717 (814,809 2,545,312 (247,024 63,047,142 253,289 499,918 (2,067,955 (4,184,089. ) ) ) ) ). ) ). 57,548,305. 1,052,111 (6,184,873 (211,755 3,156,759 (24,517 (2,952,116 1,665,420 1,380,205 (2,347,599 (407,143 55,117,687 228,509 4,043,644 (2,043,870 (5,238,103 52,107,867. ) ) ) ). ) ). ) ). 1,113,499 (5,589,457 ) (2,356,480 ) 1,172,005. (226,049 (4,066,374 (330,491 (2,907,848 (781,477 (3,874,662 4,753,270 685,398 211,145 27,538 51,915,364 236,746 1,929,218 (1,666,759 (4,983,769 47,430,800. ) ) ) ) ) ). ) ). 37,568 (188,578 ) (79,503 ) 39,541. (7,626 (137,192 (11,150 (98,106 (26,366 (130,724 160,367 23,124 7,124 929 1,751,533 7,987 65,088 (56,234 (168,144. ) ) ) ) ) ). ) ). 1,600,230. (Continued). - 10 -. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. 2015 NT$.

(11) ADVANCED SEMICONDUCTOR ENGINEERING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in Thousands) For the Years Ended December 31 2016 (Retrospectively 2017 Adjusted) NT$ NT$ US$ (Note 4). CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets designated as at fair value through profit or loss Proceeds on sale of financial assets designated as at fair value through profit or loss Purchase of available-for-sale financial assets Proceeds on sale of available-for-sale financial assets Cash received from return of capital by available-for-sale financial assets Acquisition of associates and joint ventures Net cash outflow on acquisition of subsidiaries Net cash inflow from disposal of subsidiaries Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Payments for intangible assets Proceeds from disposal of intangible assets Payments for investment properties Decrease (increase) in other financial assets Increase in other non-current assets Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Net repayment of short-term borrowings Net proceeds from (repayment of) short-term bills payable Proceeds from issue of bonds Repayment of bonds payable Proceeds from long-term borrowings Repayment of long-term borrowings Dividends paid Proceeds from issue of ordinary shares Proceeds from exercise of employee share options Payments for acquisition of treasury shares Proceeds from partial disposal of interests in subsidiaries Decrease in non-controlling interests Other financing activities items Net cash generated from (used in) financing activities. $ (100,842,813 ). 102,139,161. $. (64,853,336 ). 66,472,870. $. (61,308,095 ). 61,601,865. (1,273,510 ). (1,590,928 ). 2,761,145. 867,336. (902,648 ). $. (2,068,424 ). 2,078,335 (30,454 ). 1,121,517. 37,838. 44,511 (35,673,097 ) (30,280,124 ). 28,927 (16,041,463 ) (73,437 ) (26,714,163 ). 16,175 7,020,883 (24,699,240 ). 546 236,872 (833,308 ). 243,031 (491,135 ) 358,266 (336,864 ). 670,200 (513,893 ) 25,646 (1,231,186 ) (206,031 ). 1,488,210 (337,984 ) 34,690 (186,522 ) 236,227 (171,320 ). 50,210 (11,403 ) 1,170 (6,293 ) 7,970 (5,780 ). (63,351,429 ). (43,159,458 ). (16,086,242 ). (542,721 ). (8,532,792 ). (10,640,229 ). (2,038,993 ). (68,792 ). 8,000,000 (9,123,972 ) 35,394,158 (51,867,539 ) (11,214,221 ) 10,290,000. 269,906 (307,826 ) 1,194,135 (1,749,917 ) (378,348 ) 347,166. 4,348,054 6,136,425 39,887,570 (22,926,660 ) (15,297,474 ) -. (4,348,054 9,000,000 (10,365,135 62,282,917 (52,924,902 (12,243,766 -. 1,285,102 (5,333,406 ). 995,832 -. 8,910,346 (232,148 ) 391,322. (3,063,623 ) 219,940. (246,440 ) 43,761. (8,314 ) 1,476. (21,087,020 ). (19,323,427 ). (651,937 ). 8,636,339. ) ) ) ). 1,439,819 -. 48,577 -. (Continued). - 11 -. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. 2015 NT$.

(12) ADVANCED SEMICONDUCTOR ENGINEERING, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in Thousands) For the Years Ended December 31 2016 (Retrospectively 2017 Adjusted) NT$ NT$ US$ (Note 4). EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCY. $. NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR. $. 723,556. $. (4,720,046 ). $. (4,335,589 ). $. (146,275 ). 3,556,771. (16,858,657 ). 7,685,542. 259,297. 51,694,410. 55,251,181. 38,392,524. 1,295,294. 55,251,181. $. 38,392,524. $. The accompanying notes are an integral part of the consolidated financial statements.. - 12 -. 46,078,066. $. 1,554,591. (Concluded). WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. 2015 NT$.

(13) ADVANCED SEMICONDUCTOR ENGINEERING, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Amounts in Thousands, Unless Stated Otherwise). 1. GENERAL INFORMATION Advanced Semiconductor Engineering, Inc. (the “Company”), a corporation incorporated under the laws of Republic of China (the “ROC”), and its subsidiaries (collectively referred to as the “Group”) offer a comprehensive range of semiconductors packaging, testing, and electronic manufacturing services (“EMS”). The Company’s ordinary shares are listed on the Taiwan Stock Exchange (the “TSE”) under the symbol “2311”. Since September 2000, the ordinary shares of the Company have been traded on the New York Stock Exchange (the “NYSE”) under the symbol “ASX” in the form of American Depositary Shares (“ADS”). The ordinary shares of its subsidiary, Universal Scientific Industrial (Shanghai) Co., Ltd (the “USISH”), are listed on the Shanghai Stock Exchange (the “SSE”) under the symbol “601231”. The consolidated financial statements are presented in the Company’s functional currency, New Taiwan dollar (NT$).. 2. APPROVAL OF FINANCIAL STATEMENTS The consolidated financial statements were authorized for issue by the management on March 23, 2018.. 3. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS AS ISSUED BY THE INTERNATIONAL ACCOUNTING STANDARDS BOARD (“IASB”) ( collectively, “IFRSs”) a. Amendments to IFRSs that are mandatorily effective for the current year. New, Revised or Amended Standards and Interpretations Amendments to IFRSs Amendments to IAS 7 Amendments to IAS 12. Annual Improvements to IFRSs: 2014-2016 Cycle Disclosure Initiative Recognition of Deferred Tax Assets for Unrealized Losses. Effective Date Issued by IASB (Note 1) Note 2 January 1, 2017 January 1, 2017. Note 1: The aforementioned new, revised or amended standards and interpretations are effective for annual period beginning on or after the effective dates, unless specified otherwise. Note 2: The amendment to IFRS 12 is retrospectively applied for annual periods beginning on or after January 1, 2017; the amendment to IAS 28 is retrospectively applied for annual periods beginning on or after January 1, 2018.. - 13 -. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. In the current year, the Group has applied the following new, revised or amended standards and interpretations that have been issued and effective:.

(14) Except the adoption of Amendments to IAS 7 which can be referred to Note 34e, the Group believes that the adoption of the aforementioned new, revised or amended standards and interpretations did not have a material effect on the Group’s accounting policies. b. New, revised or amended standards and interpretations in issue but not yet effective The Group has not applied the following new, revised or amended standards and interpretations that have been issued but are not yet effective:. Amendments to IFRSs Amendments to IFRS 2 IFRS 9 Amendments to IFRS 9 and IFRS 7 Amendments to IFRS 9 Amendments to IFRS 10 and IAS 28 IFRS 15 Amendments to IFRS 15 IFRS 16 Amendments to IAS 19 Amendments to IAS 40 IFRIC 22 Amendments to IAS 28 IFRIC 23. Annual Improvements to IFRSs 2015-2017 Cycle Classification and Measurement of Share-based Payment Transactions Financial Instruments Mandatory Effective Date of IFRS 9 and Transition Disclosures Prepayment Features with Negative Compensation Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Revenue from Contracts with Customers Clarifications to IFRS15 Revenue from Contracts with Customers Leases Plan Amendment, Curtailment or Settlement Transfers of investment property Foreign Currency Transactions and Advance Consideration Long-term Interests in Associate and Joint Venture Uncertainty over Income Tax Treatments. Effective Date Issued by IASB (Note 1) January 1, 2019 January 1, 2018 January 1, 2018 January 1, 2018 January 1, 2019 To be determined by IASB January 1, 2018 January 1, 2018 January 1, 2019 January 1, 2019 (Note 2) January 1, 2018 January 1, 2018 January 1, 2019 January 1, 2019. Note 1: The aforementioned new, revised or amended standards and interpretations are effective for annual period beginning on or after the effective dates, unless specified otherwise. Note 2: The Group shall apply these amendments to plan amendments, curtailments or settlements occurring on or after January 1, 2019. c. Significant changes in accounting policy resulted from new, revised and amended standards and interpretations in issue but not yet effective Except for the following, the Group believes that the adoption of the aforementioned new, revised or amended standards and interpretations will not have a material effect on the Group’s accounting policies. As of the date that the accompanying consolidated financial statements were authorized for issue, the Group continues in evaluating the impact on its financial position and financial performance as a result of the initial adoption of the below standards and interpretations. The related impact will be disclosed when the Group completes the evaluation.. - 14 -. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. New, Revised or Amended Standards and Interpretations.

(15) 1) IFRS 9 “Financial Instruments” and related amendments Classification, measurement and impairment of financial assets With regards to financial assets, all recognized financial assets that are within the scope of IAS 39 “Financial Instruments: Recognition and Measurement” are subsequently measured at amortized cost or fair value. Under IFRS 9, the requirement for the classification of financial assets is stated below: For the Group’s debt instruments that have contractual cash flows that are solely payments of principal and interest on the principal amount outstanding, their classification and measurement are as follows: a) For debt instruments, if they are held within a business model whose objective is to collect the contractual cash flows, the financial assets are measured at amortized cost and are assessed for impairment continuously with any impairment loss recognized in profit or loss. Interest revenue is recognized in profit or loss by using the effective interest method; b) For debt instruments, if they are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, the financial assets are measured at fair value through other comprehensive income (FVTOCI) and are assessed for impairment. Interest revenue is recognized in profit or loss by using the effective interest method, and other gains or losses shall be recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses. When the debt instruments are derecognized or reclassified, the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss. Except for above, all other financial assets are measured at fair value through profit or loss. However, the Group may make an irrevocable election to present subsequent changes in the fair value of an equity investment (that is not held for trading) in other comprehensive income, with only dividend income generally recognized in profit or loss. No subsequent impairment assessment is required, and the cumulative gain or loss previously recognized in other comprehensive income cannot be reclassified from equity to profit or loss.. a) Unquoted shares and limited partnership classified as available-for-sale will be designated as at fair value through other comprehensive income and the fair value gains or losses accumulated in other equity will be transferred directly to retained earnings instead of being reclassified to profit or loss on disposal. Impairment losses previously recognized and accumulated in retained earnings will be adjusted by the Group to record an increase in retained earnings and a decrease in other equity, unrealized gains or losses on financial assets at fair value through other comprehensive income, since no subsequent impairment assessment is required under IFRS 9; b) Quoted shares classified as available-for-sale will be classified as at fair value through profit or loss under IFRS 9. Open-end mutual funds classified as available-for-sale will be classified as at fair value through profit or loss under IFRS 9 because the contractual cash flows are not solely payments of principal and interest on the principal outstanding and they are not equity instruments. The Group will reclassify unrealized gains or losses on available-for-sale financial assets in other equity to retained earnings; c) Time deposits with original maturity of over three months, pledged time deposits and guarantee deposits will be classified as measured at amortized cost under IFRS 9 because, on initial recognition, the contractual cash flows that are solely payments of principal and interest on the - 15 -. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. The Group analyzed the facts and circumstances of its financial assets that exist at December 31, 2017 and performed the assessment of the impact of IFRS 9 on the classification and measurement of financial assets. Under IFRS 9:.

(16) principal outstanding and these investments are held within a business model whose objective is to collect the contractual cash flows; and d) Debt investments with no active market will be classified as at fair value through other comprehensive income under IFRS 9, because, on initial recognition, the contractual cash flows that are solely payments of principal and interest on the principal outstanding and these investments are held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets. The Group will adjust those debt investments and other equity, unrealized gains or losses on financial assets at fair value through other comprehensive income, based on their fair value; IFRS 9 requires that impairment loss on financial assets to be recognized by using the “Expected Credit Losses Model”. A loss allowance is required for financial assets measured at amortized cost, investments in debt instruments measured at FVTOCI, lease receivables, contract assets arising from IFRS 15 “Revenue from Contracts with Customers”, certain written loan commitments and financial guarantee contracts. A loss allowance for the 12-month expected credit losses is required for a financial asset if its credit risk has not increased significantly since initial recognition. A loss allowance for full-lifetime expected credit losses is required for a financial asset if its credit risk has increased significantly since initial recognition and is not low. However, a loss allowance for full-lifetime expected credit losses is required for trade receivables that do not constitute a financing transaction. For purchased or originated credit-impaired financial assets, the Group takes into account the expected credit losses on initial recognition in calculating the credit-adjusted effective interest rate. Subsequently, any changes in expected losses are recognized as a loss allowance with a corresponding gain or loss recognized in profit or loss. In general, the Group anticipates that the application of the expected credit losses model of IFRS 9 will result in an earlier recognition of credit losses for financial assets.. The anticipated impact on assets, liabilities and equity of retrospective application of the requirements for the classification, measurement and impairment of financial assets on January 1, 2018 is set out below: Carrying Amount as of December 31, 2017 NT$. Adjustments Arising from Initial Application NT$. $. $. Adjusted Carrying Amount as of January 1, 2018 NT$. Impact on assets, liabilities and equity Financial assets at fair value through profit or loss - current Available-for-sale financial assets current Investments accounted for using the equity method. - 16 -. 5,223,067. 89,159. 89,159. (89,159). 48,753,751. (2,586). $. 5,312,226 48,751,165 (Continued). WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. The Group elects not to restate prior reporting periods when applying the requirements for the classification, measurement and impairment of financial assets under IFRS 9 with the cumulative effect of the initial application recognized at the date of initial application and will provide the disclosures related to the classification and the adjustment information upon initial application of IFRS 9..

(17) Financial assets at fair value through profit or loss - non-current Financial assets at fair value through other comprehensive income - non-current Available-for-sale financial assets non-current Other financial assets－non-current. Carrying Amount as of December 31, 2017 NT$. Adjustments Arising from Initial Application NT$. $. $. -. 214,457. Adjusted Carrying Amount as of January 1, 2018 NT$. $. 1,988,549. 1,123,006 1,170,500. 214,457 1,988,549. (1,123,006) (1,000,000). 170,500. Total effect on assets. $ 56,359,483. $. 77,414. $ 56,436,897. Retained earnings Unrealized gain on equity investments at fair value through other comprehensive income Unrealized gain on available-for-sale financial assets Unrealized gain on debt investments at fair value through other comprehensive income. $ 73,718,545. $. 364,467. $ 74,083,012. 55,517. 55,517. Total effect on equity. $ 74,141,115. $. 77,414. $ 74,218,529 (Concluded). Carrying Amount as of December 31, 2017 US$ (Note 4). Adjustments Arising from Initial Application US$ (Note 4). Adjusted Carrying Amount as of January 1, 2018 US$ (Note 4). $. $. 422,570. (422,570). -. 80,000. -. 80,000. Financial assets at fair value through profit or loss - current Available-for-sale financial assets current Investments accounted for using the equity method Financial assets at fair value through profit or loss - non-current Financial assets at fair value through other comprehensive income - non-current Available-for-sale financial assets non-current Other financial assets－non-current Total effect on assets. 176,217. 3,008. $. 179,225. 3,008. (3,008). -. 1,644,863. (87). 1,644,776. -. 7,235. 7,235. -. 67,090. 67,090. (37,888) (33,738). 5,753. 37,888 39,491 $ 1,901,467. $. 2,612. $ 1,904,079 (Continued). - 17 -. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. Impact on assets, liabilities and equity.

(18) Carrying Amount as of December 31, 2017 US$ (Note 4). Adjustments Arising from Initial Application US$ (Note 4). Retained earnings Unrealized gain on equity investments at fair value through other comprehensive income Unrealized gain on available-for-sale financial assets Unrealized gain on debt investments at fair value through other comprehensive income. $ 2,487,131. $. Total effect on equity. $ 2,501,388. 12,297. Adjusted Carrying Amount as of January 1, 2018 US$ (Note 4) $. 2,499,428. 1,873. 14,257. 1,873. (14,257). -. 2,699. $. 2,612. 2,699 $ 2,504,000 (Concluded). Hedge accounting The main changes in hedge accounting amended the application requirements for hedge accounting to better reflect the entity’s risk management activities. Compared with IAS 39, the main changes include: (1) enhancing types of transactions eligible for hedge accounting, specifically broadening the risk eligible for hedge accounting of non-financial items; (2) changing the way hedging cost of derivative instruments are accounted for to reduce profit or loss volatility; and (3) replacing retrospective effectiveness assessment with the principle of economic relationship between the hedging instrument and the hedged item. The assessment of the Group’s current hedging relationships indicates that they will qualify as continuing hedging relationships upon application of IFRS 9. 2) IFRS 15 “Revenue from Contracts with Customers” and related amendments. When applying IFRS 15, the Group recognizes revenue by applying the following steps:  Identify the contract with the customer;  Identify the performance obligations in the contract;  Determine the transaction price;  Allocate the transaction price to the performance obligations in the contracts; and  Recognize revenue when the Group satisfies a performance obligation. The Group packages bare semiconductors into finished semiconductors and provides testing services according to customers’ agreed specifications. The Group’s aforementioned performances enhance semiconductors that customers control as semiconductors are enhanced; therefore the revenue generated from packaging and testing service will be recognized over time after the application of IFRS 15. Before the application of IFRS 15, the Group recognizes revenue - 18 -. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. IFRS 15 establishes principles for recognizing revenue that apply to all contracts with customers, and will supersede IAS 18 “Revenue”, IAS 11 “Construction Contracts” and a number of revenue-related interpretations..

(19) when the significant risks and rewards of ownership of inventories have been transferred to customers. The Group elects to retrospectively apply IFRS 15 to contracts that are not complete on January 1, 2018 and recognize the cumulative effect of retrospectively applying IFRS 15 in the retained earnings on January 1, 2018. In addition, the Group will disclose the difference between the amount that results from applying IFRS 15 and the amount that results from applying current standards for 2018. The anticipated impact on assets, liabilities and equity when retrospectively applying IFRS 15 on January 1, 2018 is detailed below: Carrying Amount as of December 31, 2017 NT$. Adjustments Arising from Initial Application NT$. Adjusted Carrying Amount as of January 1, 2018 NT$. Inventories Contract assets - current Investments accounted for using the equity method Deferred tax assets. $ 24,260,911 -. $ (1,381,778) 1,971,107. $ 22,879,133 1,971,107. 48,753,751 4,001,821. 40,139 (7,287). 48,793,890 3,994,534. Total effect on assets. $ 77,016,483. $. 622,181. Current tax liabilities Deferred tax liabilities. $. 7,619,328 4,961,487. $. 5,078 90,071. $. Total effect on liabilities. $ 12,580,815. $. 95,149. $ 12,675,964. Retained earnings Non-controlling interests. $ 73,718,545 13,190,129. $. 521,849 5,183. $ 74,240,394 13,195,312. Total effect on equity. $ 86,908,674. $. 527,032. $ 87,435,706. Carrying Amount as of December 31, 2017 US$ (Note 4). Adjustments Arising from Initial Application US$ (Note 4). Inventories Contract assets - current Investments accounted for using the equity method Deferred tax assets. $. $. Total effect on assets. $ 2,598,396. $. 20,991. Current tax liabilities Deferred tax liabilities. $. 257,062 167,392. $. 171 3,039. $. Total effect on liabilities. $. 424,454. $. 3,210. $. 1,644,863 135,014. - 19 -. (46,619) 66,502. 7,624,406 5,051,558. Adjusted Carrying Amount as of January 1, 2018 US$ (Note 4) $. 1,354 (246). 771,900 66,502 1,646,217 134,768. $ 2,619,387 257,233 170,431 427,664 (Continued). WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. 818,519 -. $ 77,638,664.

(20) Carrying Amount as of December 31, 2017 US$ (Note 4). Adjustments Arising from Initial Application US$ (Note 4). Adjusted Carrying Amount as of January 1, 2018 US$ (Note 4). Retained earnings Non-controlling interests. $ 2,487,131 445,011. $. 17,606 175. $ 2,504,737 445,186. Total effect on equity. $ 2,932,142. $. 17,781. $ 2,949,923 (Concluded). 3) IFRS 16 “Leases” IFRS 16 sets out the accounting standards for leases that will supersede IAS 17 and a number of related interpretations. Under IFRS 16, if the Group is a lessee, it shall recognize right-of-use assets and lease liabilities for all leases on the consolidated balance sheets except for low-value and short-term leases. The Group may elect to apply the accounting method similar to the accounting for operating lease under IAS 17 to low-value and short-term leases. On the consolidated statements of comprehensive income, the Group should present the depreciation expense charged on the right-of-use asset separately from the interest expense accrued on the lease liabilities; interest is computed by using effective interest method. On the consolidated statements of cash flows, cash payments for the principal portion of the lease liabilities are classified within financing activities; cash payments for the interest portion are classified within operating activities. The application of IFRS 16 is not expected to have a material impact on the accounting of the Group as lessor. When IFRS 16 becomes effective, the Group may elect to apply this Standard either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of the initial application of this Standard recognized at the date of initial application.. The amendments stipulate that, if a plan amendment, curtailment or settlement occurs, the current service cost and the net interest for the remainder of the annual reporting period are determined using the actuarial assumptions used for the remeasurement of the net defined benefit liabilities (assets). In addition, the amendments clarify the effect of a plan amendment, curtailment or settlement on the requirements regarding the asset ceiling. The amendment shall be applied prospectively.. 4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Statement of Compliance The consolidated financial statements have been prepared in accordance with IFRSs as issued by the IASB. b. Basis of Preparation The consolidated financial statements have been prepared on the historical cost basis except for certain financial instruments that are measured at fair value and net defined benefit liabilities which are - 20 -. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. 4) Amendments to IAS 19 “Plan Amendment, Curtailment or Settlement ”.

(21) measured at the present value of the defined benefit obligation less the fair value of plan assets. The fair value measurements are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows: 1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; 2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or a liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and 3) Level 3 inputs are unobservable inputs for an asset or a liability. c. Classification of Current and Non-current Assets and Liabilities Current assets include cash and cash equivalents and those assets held primarily for trading purposes or expected to be realized within twelve months after the balance sheet date, unless the asset is to be used for an exchange or to settle a liability, or otherwise remains restricted, at more than twelve months after the balance sheet date. Current liabilities are obligations incurred for trading purposes or to be settled within twelve months after the balance sheet date and liabilities that do not have an unconditional right to defer settlement for at least twelve months after the balance sheet date. Assets and liabilities that are not classified as current are classified as non-current. The Group engages in the construction business which has an operating cycle of over one year. The normal operating cycle applies when considering the classification of the Group’s construction-related assets and liabilities. d. Basis of Consolidation 1) Principles for preparing consolidated financial statements The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e. its subsidiaries, including structured entities).. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Company. All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance. Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Company.. - 21 -. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate..

(22) When the Group loses control over a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and any investment retained in the former subsidiary at its fair value at the date when control is lost and (ii) the assets (including any goodwill) and liabilities and any non-controlling interests of the former subsidiary at their carrying amounts at the date when control is lost. The Group accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if the Group had directly disposed of the related assets or liabilities. 2) Subsidiaries included in consolidated financial statements were as follows:. A.S.E. Holding Limited J & R Holding Limited (“J&R Holding”) Innosource Limited Omniquest Industrial Limited ASE Marketing & Service Japan Co., Ltd. ASE Test, Inc. USI Inc. (“USIINC”) Luchu Development Corporation (“Luchu”) TLJ Intertech Inc. (“TLJ”) Alto Enterprises Limited Super Zone Holdings Limited ASE (Kun Shan) Inc.. ASE Investment (Kun Shan) Limited Advanced Semiconductor Engineering (China) Ltd. ASE Investment (Labuan) Inc. ASE Test Limited (“ASE Test”) ASE (Korea) Inc. (“ASE Korea”) J&R Industrial Inc.. ASE Japan Co., Ltd. (“ASE Japan”) ASE (U.S.) Inc. Global Advanced Packaging Technology Limited. Main Businesses. Establishment and Operating Location. Holding company Holding company. Bermuda Bermuda. 100.0 100.0. 100.0 100.0. Holding company Holding company Engaged in marketing and sales services Engaged in the testing of semiconductors Engaged in investing activity Engaged in the development of real estate properties Engaged in information software services Holding company Holding company Engaged in the packaging and testing of semiconductors Holding company. British Virgin Islands British Virgin Islands Japan. 100.0 100.0 100.0. 100.0 100.0 100.0. Kaohsiung, ROC. 100.0. 100.0. Nantou, ROC. 99.2. 99.2. Taipei, ROC. 86.1. 86.1. Taipei, ROC. 60.0. 60.0. British Virgin Islands Hong Kong Kun Shan, China. 100.0 100.0 100.0. 100.0 100.0 100.0. Kun Shan, China. 100.0. 100.0. Will engage in the packaging and testing of semiconductors Holding company Holding company. Shanghai, China. 100.0. 100.0. Malaysia Singapore. 100.0 100.0. 100.0 100.0. Engaged in the packaging and testing of semiconductors Engaged in leasing equipment and investing activity Engaged in the packaging and testing of semiconductors After-sales service and sales support Holding company. Korea. 100.0. 100.0. Kaohsiung, ROC. 100.0. 100.0. Japan. 100.0. 100.0. U.S.A.. 100.0. 100.0. British Cayman Islands. 100.0. 100.0. (Continued). - 22 -. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. Name of Investee. Percentage of Ownership (%) December 31 2016 2017.

(23) ASE WeiHai Inc.. Suzhou ASEN Semiconductors Co., Ltd. (“ASEN”) Anstock Limited Anstock II Limited ASE Module (Shanghai) Inc.. ASE (Shanghai) Inc. ASE Corporation ASE Mauritius Inc. ASE Labuan Inc. Shanghai Ding Hui Real Estate Development Co., Ltd. Shanghai Ding Qi Property Management Co., Ltd. Advanced Semiconductor Engineering (HK) Limited Shanghai Ding Wei Real Estate Development Co., Ltd. Shanghai Ding Yu Real Estate Development Co., Ltd.. Shanghai Ding Fan Department Store Co., Ltd. Kun Shan Ding Yue Real Estate Development Co., Ltd. (“KSDY”). Kun Shan Ding Hong Real Estate Development Co., Ltd. Shanghai Ding Xu Property Management Co., Ltd.. Main Businesses Engaged in the packaging and testing of semiconductors Engaged in the packaging and testing of semiconductors Engaged in financing activity Engaged in financing activity Absorbed by ASE (Shanghai) Inc. in February 2017 Engaged in the production of substrates Holding company Holding company Holding company Engaged in the development, construction and sale of real estate properties Engaged in the management of real estate properties Engaged in the trading of substrates Engaged in the development, construction and leasing of real estate properties Engaged in the development, construction and leasing of real estate properties Engaged in department store business Engaged in the development, construction and leasing of real estate properties and was disposed of in June 2017 (Note 29) Engaged in the development, construction and leasing of real estate properties Engaged in the management of real estate properties, and was established in August 2017. Establishment and Operating Location Shandong, China. 100.0. 100.0. 60.0. 60.0. British Cayman Islands. 100.0. 100.0. British Cayman Islands. 100.0. 100.0. Shanghai, China. 100.0. -. Shanghai, China. 100.0. 100.0. British Cayman Islands Mauritius Malaysia Shanghai, China. 100.0 100.0 100.0 100.0. 100.0 100.0 100.0 100.0. Shanghai, China. 100.0. 100.0. Hong Kong. 100.0. 100.0. Shanghai, China. 100.0. 100.0. Shanghai, China. 100.0. 100.0. Shanghai, China. 100.0. 100.0. Kun Shan, China. 100.0. -. Kun Shan, China. 100.0. 100.0. Shanghai, China. -. 100.0. Suzhou, China. (Continued). - 23 -. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. Name of Investee. Percentage of Ownership (%) December 31 2016 2017.

(24) ASE Electronics Inc. ASE Test Holdings, Ltd. ASE Holdings (Singapore) Pte. Ltd. ASE Singapore Pte. Ltd.. ISE Labs, Inc. ASE Electronics (M) Sdn. Bhd. ASE Assembly & Test (Shanghai) Limited ASE Trading (Shanghai) Ltd. Wuxi Tongzhi Microelectronics Co., Ltd. Huntington Holdings International Co., Ltd. Unitech Holdings International Co., Ltd. Real Tech Holdings Limited Universal ABIT Holding Co., Ltd. Rising Capital Investment Limited Rise Accord Limited Universal Scientific Industrial (Kunshan) Co., Ltd.. USI Enterprise Limited (“USIE”). USISH. Universal Global Technology Co., Limited Universal Global Technology (Kunshan) Co., Ltd.. Main Businesses. Establishment and Operating Location. Engaged in the production of substrates Holding company Holding company. Kaohsiung, ROC. 100.0. 100.0. British Cayman Islands Singapore. 100.0 100.0. 100.0 100.0. Engaged in the packaging and testing of semiconductors Engaged in the testing of semiconductors Engaged in the packaging and testing of semiconductors Engaged in the packaging and testing of semiconductors Engaged in trading activity Engaged in the packaging and testing of semiconductors Holding company. Singapore. 100.0. 100.0. U.S.A.. 100.0. 100.0. Malaysia. 100.0. 100.0. Shanghai, China. 100.0. 100.0. Shanghai, China. 100.0. 100.0. Wuxi, China. 100.0. 100.0. British Virgin Islands. 99.2. 99.2. Holding company. British Virgin Islands. 99.2. 99.2. Holding company In the process of liquidation Holding company. British Virgin Islands British Cayman Islands. 99.2 99.2. 99.2 99.2. British Virgin Islands. 99.2. 99.2. Holding company Engaged in the manufacturing and sale of computer assistance system and related peripherals Engaged in the services of investment advisory and warehousing management Engaged in the designing, manufacturing and sale of electronic components Holding company. British Virgin Islands Kun Shan, China. 99.2 99.2. 99.2 99.2. Hong Kong. 97.0. 96.9. Shanghai, China. 75.9. 75.8. Hong Kong. 75.9. 75.8. Engaged in the designing and manufacturing of electronic components. Kun Shan, China. 75.9. 75.8. (Continued). - 24 -. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. Name of Investee. Percentage of Ownership (%) December 31 2016 2017.

(25) Universal Global Technology (Shanghai) Co., Ltd.. Universal Global Electronics (Shanghai) Co., Ltd.. Universal Global Industrial Co., Limited Universal Global Scientific Industrial Co., Ltd. (“UGTW”). USI America Inc.. Universal Scientific Industrial De Mexico S.A. De C.V. USI Japan Co., Ltd.. USI Electronics (Shenzhen) Co., Ltd.. Universal Scientific Industrial Co., Ltd. (“USI”). Main Businesses Engaged in the processing and sales of computer and communication peripherals as well as business in import and export of goods and technology Engaged in the sale of electronic components and telecommunications equipment Engaged in manufacturing, trading and investing activity Engaged in the manufacturing of components of telecomm and cars and provision of related R&D services Engaged in the manufacturing and processing of motherboards and wireless network communication and provision of related technical service. Engaged in the assembling of motherboards and computer components Engaged in the manufacturing and sale of computer peripherals, integrated chip and other related accessories Engaged in the design, manufacturing and sale of motherboards and computer peripherals Engaged in the manufacturing, processing and sale of computers, computer peripherals and related accessories. Establishment and Operating Location Shanghai, China. 75.9. 75.8. Shanghai, China. 75.9. 75.8. Hong Kong. 75.9. 75.8. Nantou, ROC. 75.9. 75.8. U.S.A.. 75.9. 75.8. Mexico. 75.9. 75.8. Japan. 75.9. 75.8. Shenzhen, China. 75.9. 75.8. Nantou, ROC. 75.2. 75.5. (Concluded) e. Business Combinations Acquisitions of businesses are accounted for using the acquisition method. Acquisition-related costs are generally recognized in profit or loss as they are incurred. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity - 25 -. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. Name of Investee. Percentage of Ownership (%) December 31 2016 2017.

(26) interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after re-assessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain. When a business combination is achieved in stages, the Group’s previously held equity interest in the acquiree is remeasured to its acquisition-date fair value and the resulting gain or loss, if any, is recognized in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognized in other comprehensive income are recognized on the same basis as would be required if that interest were directly disposed of by the Group. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted retrospectively during the measurement period, or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed at the acquisition date that, if known, would have affected the amounts recognized at that date. Business combination involving entities under common control is not accounted for by acquisition method but accounted for at the carrying amounts of the entities. Prior period comparative information in the financial statements is restated as if a business combination involving entities under common control had already occurred in that period. f. Foreign Currencies In preparing the financial statements of each individual group entity, transactions in currencies other than the entity’s functional currency (i.e. foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.. Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which cases, the exchange differences are also recognized directly in other comprehensive income. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction, and are not retranslated. For the purposes of presenting the consolidated financial statements, the assets and liabilities of the Group’s foreign operations are translated into New Taiwan dollars using exchange rates prevailing at each balance sheet date. Income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income and accumulated in equity attributed to the owners of the Company and non-controlling interests as appropriate. On the disposal of the Group’s entire interest in a foreign operation, or a disposal involving loss of control over a subsidiary that includes a foreign operation, all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Company are reclassified to profit or loss. - 26 -. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. At each balance sheet date, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise..

(27) In relation to a partial disposal of a subsidiary that does not result in the Group losing control over the subsidiary, the proportionate share of accumulated exchange differences is re-attributed to the non-controlling interests of the subsidiary and is not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss. g. Inventories and Inventories Related to Real Estate Business Inventories, including raw materials (materials received from customers for processing, mainly semiconductor wafers, are excluded from inventories as title and risk of loss remain with the customers), supplies, work in process, finished goods, and materials and supplies in transit are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except for those that may be appropriate to group items of similar or related inventories. Net realizable value is the estimated selling prices of inventories less all estimated costs of completion and estimated costs necessary to make the sale. Raw materials and supplies are recorded at moving average cost while work in process and finished goods are recorded at standard cost. Inventories related to real estate business include land and buildings held for sale, land held for construction and construction in progress. Land held for development is recorded as land held for construction upon obtaining the title of ownership. Prior to the completion, the borrowing costs directly attributable to construction in progress are capitalized as part of the cost of the asset. Construction in progress is transferred to land and buildings held for sale upon completion. Land and buildings held for sale, construction in progress and land held for construction are stated at the lower of cost or net realizable value and related write-downs are made by item. The amounts received in advance for real estate properties are first recorded as advance receipts and then recognized as revenue when the construction is completed and the title and significant risk of the real estate properties are transferred to customers. Cost of sales of land and buildings held for sale are recognized based on the ratio of property sold to the total property developed. h. Investments in associates and joint ventures. Under the equity method, investments in an associate and a joint venture are initially recognized at cost and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income of the associate and joint venture. The Group also recognizes the changes in the Group’s share of equity of associates and joint venture. Any excess of the cost of acquisition over the Group’s share of the fair value of the net identifiable assets and liabilities of an associate or a joint venture at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Gains and losses resulting from upstream, downstream and sidestream transactions between the Group (including its subsidiaries) and its associates or joint ventures are recognized in the Group’s consolidated financial statements only to the extent of interests in the associates or joint ventures that are not related to the Group. i.. Property, Plant and Equipment Except for land which is stated at cost, property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment.. - 27 -. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture. Joint venture is a joint arrangement whereby the Group and other parties that have joint control of the arrangement have rights to the net assets of the arrangement..

(28) Properties in the course of construction are carried at cost, less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Freehold land is not depreciated. Depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. If the lease term is shorter than the assets’ useful lives, such assets are depreciated over the lease term. The estimated useful lives, residual values and depreciation method are reviewed at each balance sheet date, with the effect of any changes in estimate accounted for on a prospective basis. On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss. j.. Investment properties Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method. Investment properties under construction are stated at cost less accumulated depreciation and accumulated impairment loss. Cost includes professional fees and, borrowing costs eligible for capitalization. Depreciation of these assets commences when the assets are ready for their intended use. On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss.. k. Goodwill. For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units or groups of cash-generating units (referred to as “cash-generating units”) that is expected to benefit from the synergies of the combination. A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired, by comparing its carrying amount, including the attributed goodwill, with its recoverable amount. However, if the goodwill allocated to a cash-generating unit was acquired in a business combination during the current annual period, that unit shall be tested for impairment before the end of the current annual period. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then pro rata to the other assets of the unit based on the carrying amount of each asset in the unit. Any impairment loss is recognized directly in profit or loss. An impairment loss recognized for goodwill is not reversed in subsequent periods.. - 28 -. WorldReginfo - 73d81adb-0536-44ff-b000-9c0fdce659bb. Goodwill arising from an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment loss..